Security Council authorizes sale of oil to meet humanitarian concerns.

Concerned by the serious nutritional and health situation of the Iraqi population and the risk of a further deterioration in that situation the Security Council on 14 April authorized States to permit the impart of up to $1 billion in Iraqi petroleum and petroleum products every 90 days.

In unanimously adopting resolution 986 (1995). the Council, acting under Chapter VII of the UN Charter, also authorized Turkey to permit the import of Iraqi petroleum and petroleum products to meet tariff charges for their transport through the Kirkuk-Yumurtalik pipeline in Turkey. That would be after deduction of an amount to be provided to the UN Compensation Fund, which deals with claims of loss, damage or injury caused by Iraq's invasion of Kuwait.

Responsibility for supervising some aspects of the implementation of the new resolution was given to the Security Council's Sanctions Committee, which monitors the restrictions imposed on Iraq following the Persian Gulf war. Each transaction must be approved by that Committee. The full amount of each purchase has to be deposited directly by the purchaser into an escrow account to be established by the Secretary-General.

The Sanctions Committee is to monitor the sale of exports supplied through the Kirkuk-Yumurtalik pipeline and from Iraq's Mina al-Bakr oil terminal, with the assistance of independent inspection agents, who would inform the Committee of the amount exported and verify that they were sold at reasonable market value. The resolution also provided that the larger share of those exports should be shipped via the pipeline, and the remainder to come from the terminal.

The easing of sanctions was to occur on the day after the Council President informed its member that the Secretary-General had reported that effective implementation of the resolution had been taken. The exception to the sanctions were to remain in force for an initial period of 180 days, unless the Council decided otherwise.

The funds in the escrow account were to be used for:

* Financing the export to Iraq of medicine, health supplies, foodstuffs, and materials and supplies for essential civilian needs. All such exports must be at the request of the Iraqi Government, which must effectively guarantee their equitable distribution on the basis of a plan submitted to and approved by the Secretary-General;

* Ensuring the equitable distribution of humanitarian relief throughout Iraq by providing between $130 million and $150 million every 90 days to the UN Inter-Agency Humanitarian Programme operating within the sovereign territory of Iraq in the three northern Governorates of Dihouk, Arbil and Suleimaniyeh. That amount would be reduced proportionally, if the total collected every 90 days was less than $1 billion;

* Transferring from the escrow account an amount not to exceed 30 per cent of its funds to the UN Compensation Fund;

* Meeting the costs of UN activities associated with implementation of the resolution and the current operating costs of the Special Commission on Iraqi disarmament, set up under resolution 687 (1991);

* Meeting any reasonable expenses directly related to the export of Iraqi petroleum and petroleum products or to the export to Iraq of parts and equipment needed for the safe operation of the Kirkuk-Yumurtalik pipeline system, subject to the Committee's prior approval;

* Making available up to $10 million every 90 days for payments to replace funds already provided by States under resolution 778 (1992). (By that resolution, the Council had decided that all States with funds derived from the sale of Iraqi petroleum or petroleum products should transfer those funds to an escrow account established by the Secretary-General.)

The Council also affirmed that nothing in resolution 986 (1995) should be construed as infringing Iraq's sovereignty or territorial integrity. Persons appointed by the Secretary-General to implement the resolution should enjoy all relevant privileges and immunities, and the Iraqi Government should allow them full freedom of movement and all necessary facilities for the discharge of their duties.

A thorough review of its implementation was to be undertaken by the Council 90 days after its entry into force and again prior to the end of the initial 180-day period. The Council would then consider favourably renewing the resolution, provided it received a positive report from the Secretary-General on Iraq's equitable distribution of materials and supplies for essential civilian needs, as well as on expedited procedures necessary to be developed by the Sanctions Committee.

The Council also decided that the petroleum and its products covered by the resolution should, while under Iraqi title, be immune from legal proceedings and not be subject to any form of attachment, garnishment or execution.

Further, until funds began to be paid into the escrow account, the costs of exports and activities relating to the Kirkuk-Yumurtalik pipeline system in Iraq might exceptionally be financed by letters of credit drawn against future oil sales, the proceeds of which were to be deposited in the account.

Debate

In Council debate, while a number of speakers noted that the resolution affirmed Iraq's sovereignty and territorial integrity, others felt it violated those principles by allocating specific sums to Iraq's three northern provinces and in determining what were essentially bilateral relations between Iraq and Turkey.

Several speakers cited Iraq's cooperative attitude leading up to the resolution's adoption and expressed the hope that it would maintain that attitude in order to alleviate the suffering of its people. Iraq was urged to comply fully with all relevant Council resolutions so that the sanctions against it might be lifted.

A number of speakers stressed that while sanctions could be an effective instrument to influence the actions of certain States in the interest of maintaining international peace and security, it was important to mitigate their effects on innocent civilian populations. The resolution was seen as a positive step in that direction.

Secretary-General Boutros Boutros-Ghali expressed hope that the resolution, if implemented by Iraq, would be a first step towards overcoming the crisis which existed between Iraq and the international community. "Based on a step-by-step approach, I am hopeful that we will soon reach the time when Iraq implements the resolutions of the Security Council and that this would lead to a total lifting of the sanctions", he said.

Recognizing Kuwait

The Secretary-General announced on 25 January that documents transmitted by Iraq, affirming its recognition of the sovereignty, territorial integrity and political independence of Kuwait, as endorsed by Council resolution 833 (1993), had been deposited into the UN official archives.

The Kuwaiti Cabinet, in a statement, said that the decision on recognition taken by Iraq in November 1994 was a step in the right direction for Iraq's implementation of all the Council resolutions relating to its aggression against Kuwait.

On 9 January, in a letter to the Council President (S/1995/13), Kuwait added that it attached the utmost importance to the issue of prisoners and hostages. Two years after it had taken delivery of over 600 individual files through the International Committee of the Red Cross (ICRC), Iraq had not permitted the ICRC to visit the place where persons were imprisoned or detained.

The Chairman of the Special Commission on Iraqi disarmament on 17 March reported (S/1995/208) to the Security Council on ongoing monitoring and verification of Iraq's compliance with resolution 687 (1991) on the chemical. biological and missile aspects.

Revised annexes were provided, listing items to be reported by the exporting countries to the Special Commission and the International Atomic Energy Agency (IAEA). The Special Commission elaborated upon the generic descriptions in the annexes so that customs and control authorities would know precisely what items would be subject to notification.

After receiving reports of Turkish invasion into Iraq to "achieve its stated goal of preventing attacks by Kurdish rebels based in northern Iraq", the Secretary-General on 23 March urged Turkey to exercise restraint and take all measures to ensure the safety of the civilian population, including refugees, in the area.

The Office of the UN High Commissioner for Refugees (UNHCR) expressed deep concern for the safety of some 4,500 Kurdish refugees from Turkey living in villages close to the border.

Other issues

The Governing Council of the UN Compensation Commission--set up by Council resolution 692 (1991) to review compensation claims resulting from Iraq's invasion and occupation of Kuwait--at its sixteenth regular session (21-23 March) approved compensation awards to more than 162,800 individual claimants who were forced to flee either Iraq or Kuwait (category A claims). It also approved 800 claims for serious personal injury or death (category B).

The Governing Council expressed concern at the current financial situation of the compensation fund which was insufficient to pay the awards and urged prompt action to maintain the "dynamics of the operation".

On 19 January, the Governing Council elected Giuseppe Baldocci of Italy as the Commission's President for 1995-1596. Soemadi Brotodiningrat of Indonesia was elected Vice-President.

On 21 March, the UN launched a consolidated inter-agency appeal to raise $183 million for humanitarian programmes in Iraq. Key sectors and activities include health, water and sanitation, food aid and the reduction of malnutrition, education, agricultural support and assistance to returnees and refugees.

The programmes address essential relief and rehabilitation activities, and aim to prevent a further deterioration of the conditions affecting the most vulnerable population groups in the country.

RELATED ARTICLE: No response from Iraq

A UN spokesman on 17 April reported that the Organization had not received a formal written response from Iraq regarding its acceptance or non-acceptance of the resolution. However, the press had reported a negative reaction and the Secretary-General had asked him to say that he regretted Iraq's attitude, as reported by the press, and hoped that the Government would reconsider its position.

In informal meetings in January and March, the comprehensive economic sanctions against Iraq, imposed by Council resolution 661 t1990) of August 1990, during Iraq's invasion and occupation of Kuwait, were continued after the Council decided that there was no agreement that the necessary conditions existed for their modification.

RELATED ARTICLE: UNIKOM mandate extended

The Security Council on 10 April decided to maintain the mandate of the UN Iraq-Kuwait Observer Mission (UNIKOM) until further review by 7 October 1995.

On 31 March, the Secretary-General reported (S/1995/251) to the Council that UNIKOM should be maintained, as it had contributed significantly to the reduction of tension and the preservation of calm in its area of operation. Calm had generally prevailed over the last six months along the border and in the demilitarized zone (DMZ) between Iraq and Kuwait. However, there had been a period of tension in October 1994 in connection with reports about the deployment of Iraqi troops north of the DMZ.

The Secretary-General also reported that on 13 March, two United States citizens had been apprehended by Iragi police after mistakenly crossing the border. The two had been allowed to pass a UNIKOM checkpoint because, with darkness falling, the sentries on duty mistook their white vehicle for one belonging to the UN. The procedures at the checkpoint had since been tightened and the Organization was making an effort to have the two men released.